roy Inc. has the following projected sales for the next five months Apri May Jun
ID: 2520020 • Letter: R
Question
roy Inc. has the following projected sales for the next five months Apri May June July August in Units 3,850 3,875 4,260 4,135 3,590 goods inventory policy is to have 60 percent of the next month's sales on hand at the end of each month. Direct material costs $3.10 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month's production needs on hend at the end of each month. Raw materials on hand at March 31 totaled 3,885 pounds Required: 1. Determine budgeted production for April, May, and June April MayJune Budgeted Production (Units) 2. Determine the budgeted cost of materials purchased for Api, May, and June. (Round your answers to 2 decimal places.) Budgeted Cost of Material PurchasedExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars April May June Jul Aug Budgeted Sales 3,850.00 3,875.00 4,260.00 4,135.00 3,590.00 Ending Finished goods at 60% 2,325.00 2,556.00 2,481.00 2,154.00 Total available for sales 6,175.00 6,431.00 6,741.00 6,289.00 Beginning Finished Goods = Ending of prev month 2,310.00 2,325.00 2,556.00 2,481.00 Budgeted production in Units = 3,865.00 4,106.00 4,185.00 3,808.00 Budgeted production in Units = 3,865.00 4,106.00 4,185.00 3,808.00 Pound required per unit 2.00 2.00 2.00 2.00 Total pounds required for production 7,730.00 8,212.00 8,370.00 7,616.00 Add Ending raw material inventory = 50% next month prod 4,106.00 4,185.00 3,808.00 Less Beginning raw material inventory 3,865.00 4,106.00 4,185.00 Total Material purchased 7,971.00 8,291.00 7,993.00 Cost per pound 3.10 3.10 3.10 Total cost of purchases 24,710.10 25,702.10 24,778.30
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